Some exceptional quarters from MDB and ESTC. SMAR is as well.

Just read through the Smartsheet earnings call and I am pumped. This thesis is playing out. They are not a project management platform, though they do that really well.

They are a workflow management and automation platform. That’s what I’m calling them now. They just released (so new they haven’t released the press yet) a GDPR automation accelerator. These accelerators are premade templates for workflows, automation, reporting, etc. These capabilities currently drive 9% of subscription revenues for $4.6M. A small base but kudos for them giving the data. That’s also a 22% increase over the previous quarter (Q4).

It’s worth a read, I really like their momentum and direction (vector).

Headline number was 55% total rev growth a slight deceleration from 58% in Q4. BUT subscription growth was 57% and same rate as Q4. Pro services grew at only 34% compared to 77% in Q4. This lower margin pro services deceleration is attributed to the accelerators and other capabilities requiring less services for on-boarding and expanding existing customers. Part of the thesis, let’s hope that continues.

S&M 59% of revenue compares to 54% in Q4 and 60% in year ago quarter on increased headcount. Fairly flat really.

DRR same as Q4 at 134% and better than year ago of 130%.

Average annual contract value impressive 48% increase.

Billings up 52% compared to 50% in Q1 year ago.

Full year guidance is basically 50% growth so looking at stable growth going forward, mid 50% range with expected beat and raise. Could more accelerator launches drive some upside?

Continued expansion of high value customers >$5K, >$50K, and >$100k. 56%, 117%, and 139% yoy customer count growth respectively.

A smashing quarter in my opinion, except for pro services and a little seasonality it’s a cut and paste of Q4.



I agree, specifically, in regards to the accelerators. They seem very giddy about this offering. It seems to be a good solution that is allowing them to solve problems quickly with clients, setting up for a long working relationship. I like to think of baseball as an analogy. They are using these accelerator templates to get some base hits and get some men on base, and get some momentum with their client. Then over time they can hit some homeruns with some of their other offerings that may be more customized. Another reason these are such a great offerings is they are helping reduce servicing costs because they are easier the get up and running. I thought it was a good quarter overall. My two cents.